Binance, the world’s biggest crypto firm, is suffering from sprawling legal problems and an exodus of top employees.
The World’s Biggest Crypto Firm Is Melting Down
The Wall Street Journal comments The World’s Biggest Crypto Firm Is Melting Down
After FTX crashed, the world of crypto seemed to belong to the largest exchange, Binance. Less than a year later, Binance is the one in distress.
Under threat of enforcement actions by U.S. agencies, Binance’s empire is quaking. Over the past three months, more than a dozen senior executives have left, and the exchange has laid off at least 1,500 employees this year to cut costs and prepare for a decline in business. And while Binance still looms large in crypto, its dominance is dwindling.
Binance now handles about half of all trades where cryptocurrencies are directly bought and sold, down from about 70% at the start of the year, according to data provider Kaiko.
“Every battle is a do-or-die situation, and the only thing that can defeat us is ourselves,” she wrote in the message viewed by the Journal. “We have won countless times, and we need to win this time as well.”
“We have worked tirelessly not just to learn the lessons of the past, but also to continue to invest in the teams and systems that ensure user protection,” a spokesman said.
Technically Speaking
Technically speaking, the chart is a disaster.
Declining wedge patterns are bearish and the fundamental news is bearish.
Fundamentally Speaking
The U.S. Justice Department has undergone a yearslong investigation that could result in criminal charges for Binance and Zhao as well as billions of dollars of fines, according to people familiar with the probe.
Binance also faces a Securities and Exchange Commission lawsuit that alleges it and Zhao operated illegally in the U.S. and misused customers’ funds. The firm has acknowledged past mistakes but says customer money is safe and it is committed to compliance.
“Do-or-Die” Situation
Can anyone please explain why an institutional firm would still be dealing with Binance?
Yet, an institutional trader told The Wall Street Journal that his company has conducted fire drills to withdraw its assets from Binance quickly in the event of a meltdown.
Seriously, what the hell?
If there is a sudden meltdown, why would anyone, let alone an institutional player think they could quickly get out?
Don’t worry, “customer money is safe,” and they no longer misuse client funds says Binance. Lovely.
The company is committed to compliance at some point in the future, hopefully before everyone shuts it down. In Europe, more countries are shutting their doors to the exchange.
Congrats if you got in BNB prior to the surge.
But if you are still hanging on to the coin, why? And if you still have assets at Binance, you are nuts.
Binance is simply what corrupt banking corporations were prior to the creation of the federal reserve. Maybe there’s gold in the vault. Maybe enough to cover liabilities. Maybe the gold was stolen by the founder to fund his chalet in Paris. Nobody knows until the run starts.
Crypto isn’t one thing. It’s a market place with many cryptos being junk just like many fiat currencies are junk (the US dollar lost 18% last year). People who’ve held Bitcoin for years have done better than those who have held US dollars, but no one should hold US dollars as they always lose value. The key is investing in stuff that goes up over time. You shouldn’t invest in crypto. You should use crypto as it helps facilitate business and reduces the transaction costs (cheaper than the banks and credit cards.. 10-30% maybe more if you eliminate credit cards on both ends of a transaction that is supplier and your customer). Most of this is fear mongering and ignoring realities. Cryptos like Bitcoin, Bitcoin Cash, Monero, and Dash have infrastructure, wallets, and use cases. That is it’s a currency. SO yea- stop investing in it. It’s not an investment. It’s a currency. Saying “Crypto” is hidden is silly and fearmongering that it’s hard to understand is silly. Dirty fiat is hard to understand too, but you are being used by government money printing. What gives dollars value? Demand. What gives crypto value? Demand. What gives your property value? Demand. Your access of this site is also hidden, but that isn’t a bad thing. It’s by design to protect you just as it is with cryptocurrencies. That doesn’t mean every cryptocurrency or people pedaling it have your best interests in mind just as the realtor selling you a house wants you to spend as much as humanly possible so they get a bigger commission. I’ll continue buying crypto and using crypto and benefiting from it, but I don’t “invest” in it. I don’t buy it for the sake of holding it in the hope its value goes up. I accept it, I spend it, I get good discounts and reduce transaction costs, and in some instances like with Monero it protects my privacy (if you think you don’t care about privacy you should leave the bathroom stall door open next time you use a public restroom), it eases don’t business internationally, and these are some of its benefits.
Thanks John, a few thoughts to run by you for your opinion. I do not own Crypto, but have friends that do. I talk with them, but they have not convinced me yet…
– The key is investing in stuff that goes up over time.
Nothing is guaranteed to go up over time.
– You shouldn’t invest in crypto.
Agreed
– What gives dollars value?
It’s accepted Worldwide. It’s transactional on demand. It’s backed by a Country.
– What gives crypto value?
Nothing but hype and hope. Not transactional on demand. It’s not backed by anything.
– What gives your property value?
A place to live and call Home. If maintained it’s an easily sellable asset for a regional acceptable amount.
I have tried understanding crypto. Watched hours of videos. Still makes no sense to me but to each their own. I buy stuff. Property and land. It always goes up in value around here. Sticking to what I know works. I might go swimming in my pool tonight or just look at it…meh.
– I have tried understanding crypto.
I have as well, but I have determined at this point its purpose was nefarious. What you look at the definition of Crypto* it does help to explain a lot!
*An element in words of Greek origin, meaning ‘hidden, concealed, not evident or obvious.’
Boy that hits the nail on the head!
– Hidden, as in the true Value? Is there any Value at all, or does its value simply align with the hype? When the hype increases, so does the value, and vise-versa.
– Concealed, as in nobody really knows, or cares that’s involved, as long as they get theirs.
– Nor Evident or Obvious, as in “Like a Pet Rock” which has no intrinsic value, but adoration and hype, but they sold like hotcakes, until they didn’t.
So what is Crypto actually good for? Can you buy a home with it? A car? Can you use it as collateral? Can you exchange it directly for gold? Can you but food, gas, electricity, shelter, or anything you need to stay alive?
OR IS IT: Simply an Investment Vehicle for Profit Only?
You be the Judge and buy and sell accordingly, and don’t get stuck holding any of it, when it eventually goes south, by Governments Edict, it’s value will be $0.00 and you will wish you had Food or something more useful than a shiny object at that point worth nothing at all, but dreams of what could have been.
P.S. Whom do you think is truly making ALL the $$$ from Crypto? Not the average investor out there IMO. It’s a bit more Cryptic than that unfortunately, for many involved…
If it’s publicly traded & affiliated with crypto, short it if shares are available.
Great recent example = BTM
While it may take a few more years for crypto itself o go the way of Beanie Babies or Furby, these companies are crumbling like Dutch tulip bulbs.
.
Mish: sometimes you just crack me up! this post is one of those times. thanks for all your good work. Been to St. George. beautiful country. Enjoy!
Been in crypto over a decade. Tens of thousand of % upside in BTC and NFTs. Been in DAOs… feel I have the pulse of “the community”. Been extremely short crypto for months now. Zero-bid air pocket collapse soon.
“do-or-die situation”
Most people figured out a long time ago that the second option was the preferred, no-brainer one.
That just leaves the do-ers looking rather pathetic.
Find another hobby now… fight the CBDC, rather than speculate on your favorite tulip color.
Amazing what greed and stupidity can do.
P.T. Barnum was right.
If you are still into these crooks, you DESERVE to LOSE it all.
No free lunch!
There is a free lunch.
As long as you keep buying beers.
There are small institutional firms that do specialize in really risky things. Often their hedging strategies can be very inventive, sometimes even crazy but logical.
It’s all about Monero.
Can you please elaborate? Curious…